Report Warns Of Fiscal Challenges Ahead For NY

A non-partisan task force has found New York’s state and local governments remain on an unsustainable fiscal path despite some improvements and a public perception in polls that the outlook is far brighter.

The State Budget Crisis Task Force led by former Democratic Lt. Gov. Richard Ravitch and former Federal Reserve Chairman Paul Volker says Tuesday the issue is of “dire importance.”

They cite the state’s longstanding debt and recurring budget deficits. They say there is no assurance the state will be able to sustain its taxing and spending practices.

The report comes as Gov. Andrew Cuomo is touting his fiscal accomplishments and public opinion polls that show people believe New York is headed in the right direction for the first time in years.

The report lays out the challenges facing New York in the coming years, and boils it down to two major issues: improving and replacing some of the state’s aging infrastructure, and dealing with numerous cities and counties that are facing budget crises of their own.

“The state government is aware of threats to the solvency and dynamism of local governments and has taken some action, but much more needs to be done,” the report reads.

The authors also write that they believe New York may have to put a bond notice on the ballot in order to help recover from Superstorm Sandy. Voters have to approve a ballot measure in order for the state itself to take out general-obligation bonds.